Been attending a couple seminars and meetings lately aimed at estate planning and the effects of Royalty payments on the estate. The implied consequences are staggering. So are the proposed legal fees for setting up Family Limited Partnerships, LLC's, ect. I am really wondering if a lot of what they are hyping is true.
The real scare part is the impact of possible future royalty valuation in the estate. If, as explained, the next 20 years worth of royalties can be added to the value of the estate and taxed at the time of death it could concievably add 10-12 million to an estate of a 200 acre land owner. The tax on this and other parts of the estate would then be due from the estate within 90 days. At a possible 45% tax rate this could mean 3-5 million due then. For most the only way to pay that would be to sell the land and royalty rights, most likely at less than favorable prices.
So my question is has anybody had any experience or gotten any good advice from a tax or estate professional they trust. Some of the figures I have gotten for setting up a Family Limited Partnership top $15,000. Including appraisials of royalties, 3-6K, Legal Fees 8-9K.
All of this is so new to area that I worry some of these outfits may be riding on/manufacturring a wave of hysteria. If all the hype is true I definatley see the need to set things up now, cost seems pretty steep though.
This is my first post since joining last month so if I didnt put in the proper forum I apologize
Thanks
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